You've decided to buy a new home! Now, in order to create a clear picture of what you want, it's useful to make a written analysis of your needs. This is a three-step, process.
Why are you looking for a new home? Ultimately, what do you expect your new property to provide?
What is your time frame for buying your home? Determine a rough schedule that can be refined later.
What would you like your new home to look like and what features should it have? Create two lists: the first is your dream home and the second is a home that focuses on only your primarily needs. This will help you differentiate what you "want" vs. what you "need."
After completing your lists share them with your REALTOR®. Your REALTOR® is a trained professional who can help focus your wants and needs and decide how best to achieve them.
MORTGAGE INFORMATION: Determining What You Can Afford
When you've established what features you want in your new home, you'll need to calculate how much you can afford. Although you can do much of the basic research using the WEB, just visit our Mortgage Center via our home page, eventually you'll want to contact a mortgage company or mortgage broker. A mortgage company will:
Help you determine how much you can afford
Have up to date mortgage rates
Arrange CMHC financial insurance
Explain closing costs, down payment options, etc.
Explain the difference between being pre-qualified and pre-approve
Help you pre-qualified or pre-approve for a mortgage
Explain the difference between a mortgage and a loan
Home Search: Finding Your Dream
You know the neighbourhood and the type of home in which you want to live. It 's time to find it. If you are not familiar with Ottawa you will want to start your search by finding neighborhoods that meet your criteria and then narrowing your search to particular homes.There are steps you can take to narrow your search, including:
Contacting your REALTOR® who is up to date on available properties that meet your criteria and who will arrange for you to visit homes.
Contacting local neighbourhood associations or District School Boards.
Touring neighbourhoods that meet your criteria can be helpful.
The community in which your new home is located can be as important as the home itself. You're not just purchasing a house. You're investing in a neighbourhood and its resources.ie. Parks, recreational facilities, health care services, shopping, and schools. Next, create a written list of what you expect in your neighbourhood. Consider these steps:
Develop a list of your ideal neighbourhood. You may want to make two lists, as you did for your home, one list that describes a neighbourhood that possesses both your wants and needs and another that outlines a community that primarily meets your needs.
You'll want to consider various criteria such as schools, recreational facilities, shopping, commuting time, population density, taxes etc.
Share the list with your REALTOR®. We can help you focus and prioritize your wants and needs and connect you with the right communities.
MAKING AN OFFER: You've Found It!
You've toured various properties and found the house you want! It's time to make an offer. Your offer is based on numerous criteria including:
What you are willing to pay and what the seller is willing to accept.
Recent sales of homes in the community similar in size, quality.
Conveniences and special needs the home and neighbourhood provide.
In writing an offer, it is best to retain a REALTOR®. who willl:
Answer any questions or concerns you have regarding the property. Explain legal procedures, terms and the contract process etc.
Save you time and money by ensuring that your contract meets legal requirements according to local and provincial guidelines.
Advise you on how to create an offer that will have the best chance of acceptance.
Protect your financial position by including needed contingencies.
Present the offer to the seller or the seller's agent
The CONTRACT, though not limited to this list, should include the following:
A legal description of the property
The parties involved
The offering price
A deposit
An expiry time for the offer
Financing arrangements
Inspection rights and possible repair allowances
The method of conveying the title and who will handle the closing
A list of fixtures and chattels such as appliances or furnishings that will stay with the home
Closing date
Declaration of Agency Representation
NEGOTIATING TO BUY: Satisfaction through Compromise
Successful negotiating is based on the premise that in the end both the buyer and seller will be satisfied. Once your offer has been made there may be areas open to negotiation. At this point your experienced REALTOR®, can protect your interests ensuring that you get the best terms and price. Some areas that may be open to negotiation include:
Price
Financing
Closing costs
Necessary repairs resulting from the house inspection
Financing arrangements with institutions or through the seller
Appliances, fixtures, and other concerns to be properly documented in the contract
Closing date
VENDOR COORDINATION: It's more than Just You and Your Realtor.
After your offer has been accepted you may choose to have a home inspection. This means various inspections and procedures will be performed to protect your future investment. Your REALTOR® will coordinate and supervise these efforts, saving you time and money. Some of these procedures include:
A formal appraisal or survey of the property
A home inspection
A foundation inspection
A well or septic inspection
Obtaining property insurance equal to the full replacement value of your property
PRE-CLOSING PREPARATION: Closing in on the Closing
For the most buyers nerves can become frayed as the closing date approaches. At this time an experienced REALTOR® can help you with a quick and easy closing by:
Coordinating the necessary documentation with the solicitors
Communicating with the mortgage company
Staying in touch with related parties
Assuring that you are ready for the closing by confirming the proper form of payment made out to the correct party
CLOSING: You've Arrived !
Closing is the legal transfer of Real Estate from one person to another. During a closing, which is held at the lawyer's office, numerous legal documents are signed and the collection and disbursement of funds occurs. Your REALTOR® will be available at this time to handle any questions or resolve any issues that may arise. After closing, the property is yours! In order to insure a smooth closing you should:
Have your REALTOR® available to handle any last minute details. Have the necessary funds in the proper form of payment
Have all necessary documentation
Remember, this is not a time for negotiation, all negotiations should have been completed already and the results recorded in writing
POST-CLOSING: Congratulations ! The Home is yours!
Now the home is yours and with closing comes a list of companies you need to contact. Before closing, your REALTOR® will anticipate the need to communicate with numerous groups, including the:
